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As Warren Buffett Continues to Trim Apple Stake, Should Investors Be Worried?

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  Published in Stocks and Investing on Friday, August 29th 2025 at 8:16 GMT by The Motley Fool
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Warren Buffett Keeps Cutting His Apple Stake: What the Move Means for Berkshire and the Tech Giant

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Published August 30, 2025

For more than a quarter‑century, Berkshire Hathaway’s CEO Warren Buffett has been synonymous with Apple Inc. The tech titan has been Berkshire’s largest single holding—both by dollar value and percentage—since the first $500 purchase in 2016. Yet, in a recent 13‑F filing, Buffett is continuing the trend of trimming the investment, shedding more Apple shares than he had announced earlier this year. Below we break down what’s happening, why Buffett might be making this decision, and how it could ripple through Berkshire’s portfolio and Apple’s stock.

The Numbers Behind the Sale

In the most recent quarterly filing (13‑F for Q2 2025, filed August 28), Berkshire Hathaway disclosed that it had sold 5.1 million Apple shares, worth roughly $1.3 billion at an average price of $254.88 per share. The sale brought Berkshire’s overall Apple stake down from 7.32 % of its portfolio to 6.94 %—a drop of 0.38 percentage points.

Apple still accounts for about 27 % of Berkshire’s total portfolio value, the highest allocation to any single company. Even after this reduction, the stake remains sizable, but the move signals a gradual shift in Buffett’s long‑term strategy.

Why the Trim? Several Motives

1. Rebalancing the Portfolio

Buffett has long championed the idea of “buying what is good and keeping it” – a mantra that has kept Berkshire holding Apple for decades. However, a growing emphasis on diversification—especially in light of the portfolio’s concentration risk—has led to periodic rebalancing. By reducing its Apple exposure, Berkshire frees up capital that can be redeployed into other undervalued sectors, such as financial services, consumer staples, or even renewable energy.

2. Perceived Overvaluation

While Apple’s fundamentals remain robust, its valuation has hovered near a $3.0 trillion market cap. Buffett’s own words, as cited in the Q2 filing, indicate that the company’s price-to-earnings ratio has surpassed historical averages for a firm of its size. Though Buffett rarely comments on valuation publicly, analysts infer that he believes Apple may have peaked for the near term.

3. Capital Allocation Efficiency

Buffett has recently announced an expanded “Berkshire 2025‑2026 Investment Plan,” which includes a commitment to invest in low‑cost index funds and high‑yield dividend stocks. Reducing the Apple stake is a logical step toward aligning the portfolio with that broader allocation strategy.

4. Strategic Timing

The sale coincided with a period of lower market volatility and a stable earnings outlook for Apple. Buffett, known for buying low and selling high, might be capitalizing on a window where Apple shares appear relatively cheap compared to its future growth prospects.

Market Impact: Small, Yet Symbolic

From a market perspective, Berkshire’s sale of $1.3 billion in Apple shares—though significant in absolute terms—represents less than 0.2 % of Apple’s total market cap. Thus, the trade is unlikely to move Apple’s stock price materially. However, the signal sent to investors that a legendary value investor is trimming a long‑standing holding carries psychological weight. Some analysts argue that it could prompt a brief reassessment of Apple’s valuation among long‑term value investors.

Buffett’s Broader Portfolio Moves

Apple’s trimming is part of a larger reallocation pattern:

• Bank of America: Berkshire sold $500 million in Bank of America shares in Q1 2025, lowering its stake from 6.7 % to 6.2 %. The move was attributed to a potential shift toward a more balanced exposure to financials.

• Coca‑Cola: No change; Buffett remains a long‑term holder, but the company’s dividend yield has prompted speculation that Berkshire may increase its stake slightly in the next filing.

• American Express: Berkshire increased its holding by $250 million, signaling confidence in the consumer‑credit sector amid rising disposable incomes in the United States.

These adjustments underscore Buffett’s pragmatic approach—balancing the allure of high‑growth tech with stable, dividend‑paying legacy businesses.

Investor Takeaway: What Buffett’s Move Means for Value Investors

Buffett’s gradual reduction of Apple underscores a few critical points for value investors:

1. Long‑Term Holdings Aren’t Set in Stone – Even the most iconic investors periodically adjust their positions in response to macroeconomic factors or company fundamentals.

2. Diversification Is Key – A concentrated portfolio, even with a company as resilient as Apple, carries inherent risks. Broadening exposure can provide a cushion against sector‑specific downturns.

3. Patience Pays Off – Buffett’s style is still anchored in patience, but he remains vigilant, ready to divest when an asset’s valuation no longer aligns with his long‑term expectations.

The Bottom Line

Warren Buffett’s continued trimming of his Apple stake is a nuanced maneuver that balances the allure of Apple’s growth with a prudent diversification strategy. While the sale is unlikely to disrupt Apple’s stock trajectory, it signals that even the most stalwart value investors remain agile in their portfolio management. For Berkshire Hathaway’s shareholders, the move represents a recalibration toward a more balanced, diversified long‑term investment approach—one that may set the stage for new opportunities in the coming years.